GET DAILY SIGNALSRepay Holdings (RPAY) Delivers +97% Revenue Growth in Q3 Amid KUBRA Integration
Key Takeaways
- Revenue reached $153.4 million, up 97% year over year, including a full-quarter contribution from the KUBRA acquisition.
- Adjusted EBITDA rose 63% to $50.9 million, with adjusted EPS of $0.25.
- On a GAAP basis, the company posted a net loss attributable to common shareholders of $9.3 million, or $0.11 per diluted share.
- Gross margin compressed to roughly 65% from 74% a year ago, reflecting KUBRA's lower-margin print-and-mail mix.
- Management reiterated full-year 2026 revenue guidance of $490 million to $500 million and raised its political media revenue forecast.
- For additional context, explore the company's Major News, Today's Price Move, Price Targets, and Forecast pages.
- Explore Trending AI Robots to see how AI-driven strategies are approaching the market.
Earnings Context and Why It Matters
Repay Holdings' third-quarter 2026 results mark the first full period to include KUBRA, the bill payment and customer communications business it acquired to broaden its presence in bill presentment and digital payments. That deal has reshaped the company's revenue base while also drawing scrutiny from an activist shareholder. The quarter therefore serves as an early test of how quickly KUBRA's scale and cost synergies can offset the lower-margin print-and-mail mix it introduces. For investors, the report offers a read on organic growth momentum, margin durability, and the pace of leverage reduction, all of which matter for a company still reporting GAAP losses.
Reported Results
Repay Holdings reported third-quarter 2026 revenue of $153.4 million, up 97% from $77.72 million a year earlier and modestly ahead of the consensus estimate. Organic revenue growth was 13.6%, including roughly nine points of contribution from political media; excluding that cyclical spending, normalized organic growth was approximately 5%. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Gross profit rose to $99.5 million, though gross margin narrowed to about 65% from 74% in the prior-year period, a shift driven almost entirely by KUBRA's product and payment mix. Adjusted EBITDA climbed 63% year over year to $50.9 million, with an adjusted EBITDA margin of approximately 33%. Adjusted net income was $22.5 million, or $0.25 per share.
On a GAAP basis, results remained in the red. The company recorded operating profit of just $0.1 million and a net loss attributable to common shareholders of $9.3 million, or $0.11 per diluted share. Free cash flow was negative $21.1 million, weighed down by a $14 million investment tied to a bank reseller channel partnership, interest expense, and working capital timing related to elevated political media receivables.
Market Reaction and Investor Sentiment
Repay Holdings shares entered the report with a year-to-date gain of roughly 20%, outpacing the broader market, as investors looked past GAAP losses and focused on the KUBRA integration and improved leverage trajectory. Sentiment heading into the print was nonetheless cautious: the KUBRA transaction faced public opposition from shareholder Veradace Partners, which called for the deal's termination and additional board representation. Against that backdrop, the quarter's revenue acceleration and raised synergy targets are likely to be weighed against the ongoing gross-margin compression and negative free cash flow, keeping the post-earnings reaction tied closely to management's outlook commentary.
Forward Outlook and Key Factors to Monitor
Repay reiterated its full-year 2026 revenue outlook of $490 million to $500 million and raised its political media revenue forecast to a range of $16 million to $18 million for the year. Management also lifted its targeted KUBRA cost-synergy run rate exiting 2026 to $11 million, up from a prior target of $8 million, while continuing to target more than $20 million in combined operating and capital expenditure synergies exiting 2028.
Investors will want to watch whether Consumer Payments organic growth, which was essentially flat year over year in the third quarter, reaccelerates as expected. Management guided to low single-digit organic growth for Consumer Payments in the fourth quarter and a return to growth in 2027, supported by improved pipeline quality and client expansion. The Business Payments segment remains a bright spot, with strong growth even after excluding political media.
Key factors to monitor include the normalization of political media receivables and its effect on free cash flow, the pace of KUBRA's shift from print toward higher-margin digital presentment, and progress on reducing net leverage. The pending final investment under the bank reseller partnership is also worth tracking, as it may influence near-term free cash flow conversion.
Using Tickeron’s AI Tools for Deeper Analysis
In my view, tools like Tickeron’s AI Screener and AI Trend Prediction Engine can help investors quickly compare Repay Holdings against peers and spot relevant patterns. I find the AI Daily Buy/Sell Signals particularly useful for monitoring momentum around earnings periods like this one. These resources have become a regular part of my workflow when evaluating payment and fintech names.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
RPAY saw its Stochastic Oscillator leaves the overbought zone
The Stochastic Oscillator for RPAY moved out of overbought territory on November 06, 2026. This could be a bearish sign for the stock and investors may want to consider selling or taking a defensive position. A.I.dvisor looked at 53 similar instances where the indicator exited the overbought zone. In 45 of the 53 cases the stock moved lower. This puts the odds of a downward move at 85%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for RPAY moved out of overbought territory on November 05, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 32 similar instances where the indicator moved out of overbought territory. In 26 of the 32 cases, the stock moved lower in the following days. This puts the odds of a move lower at 81%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where RPAY declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 81%.
RPAY broke above its upper Bollinger Band on October 30, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 09, 2026. You may want to consider a long position or call options on RPAY as a result. In 58 of 80 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 73%.
The Moving Average Convergence Divergence (MACD) for RPAY just turned positive on October 05, 2026. Looking at past instances where RPAY's MACD turned positive, the stock continued to rise in 32 of 50 cases over the following month. The odds of a continued upward trend are 64%.
RPAY moved above its 50-day moving average on October 02, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for RPAY crossed bullishly above the 50-day moving average on October 13, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 13 of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 81%.
Following a +6.33% 3-day Advance, the price is estimated to grow further. Considering data from situations where RPAY advanced for three days, in 177 of 258 cases, the price rose further within the following month. The odds of a continued upward trend are 69%.
The Aroon Indicator entered an Uptrend today. In 113 of 159 cases where RPAY Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 71%.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 39 (best 1 - 100 worst), indicating steady price growth. RPAY’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 67 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 73 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.772) is normal, around the industry mean (16.360). P/E Ratio (-2.189) is within average values for comparable stocks, (53.310). Projected Growth (PEG Ratio) (4.550) is also within normal values, averaging (3.696). Dividend Yield (0.000) settles around the average of (0.434) among similar stocks. P/S Ratio (0.928) is also within normal values, averaging (104.492).
The Tickeron Seasonality Score of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is 97 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. RPAY’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 92, placing this stock worse than average.
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General Information
a company, which engages in the provision of integrated payment processing solutions to verticals that have specific transaction processing needs.
Industry ComputerCommunications
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